How to Fix a Bad Credit Score

A bad credit score does not happen over night. It can take years to ruin your credit. Know that it can also take years to fix a bad credit score. While it is entirely possible to bounce back after financial troubles, you must have persistent dedication. Follow these steps to fix your bad credit score and repair your financial life.

Things You'll Need

• Self Control

Instructions

How to Fix a Bad Credit Score

1. Recognize the problem. When you flip through your mail and find yourself ignoring bills just because you don't want to see the balance, you have a problem. When you have 20% and 30% interest rates on your credit cards, you have a problem. Recognizing that you have a financial and credit problem is the first step to freedom.

2. Pull your credit reports. There are three credit bureaus. You can get a credit report from each agency free each year. This way you will know your credit score, no matter how bad it is. You have a starting point. You should also check this report for errors.

3. Stop spending money. Quit cold turkey. Stop spending money on anything you do not need. Unless it is food, rent, gas or utilities, don't spend. Things such as cell phone and Internet should be eliminated. When you free up your money you can begin to pay your outstanding bills. When your debt is eliminated, you can add back some of the fun items.

4. Pay your bills on time. This is the simplest way to improve your credit score. Simply pay your bills when they are due. It is simple if you set up electronic withdraws. Then you don't even have to think about it.

5. Contact your lenders if you will have trouble paying during a particular month. Communication is the key. There will be record of your call and acknowledgement of your willingness to cooperate. Don't hide from lenders. Make yourself and open book. Most will work with you and help you set up a reasonable payment plan.

Tips & Warnings

• Set up automatic withdraw payments through the lender to escape electronic check fees with your bank.

• Frequent lender credit checks can lower your credit score.